Parents who consider purchasing life insurance for their children are taking an important step. Not only are they looking to protect their financial future in the event the unthinkable comes to pass, but there are other aspects of having a life insurance policy for a child that can benefit them during their lives.
First and foremost, you should look into purchasing whole (or “permanent”) life insurance for your child. Even if you can find a term life insurance policy you can purchase for a child, its premiums will skyrocket at the end of the term, so starting your child off with an insurance policy that’s not a proverbial jack-in-the-box is ideal for most parents.
This brings us to the concept of life insurance policies that “grow up” with your children. Investing in a life insurance policy for your children ensures they are covered from an early age. When they grow up, they can become eligible for riders that may expand their coverage at better rates – and without poking and prodding questions about their health. This can be particularly useful in helping your child get more affordable life insurance if they develop a debilitating or even terminal illness later in life.
Parents or grandparents may purchase a life insurance policy for children or grandchildren without ever intending it be used for its real purpose. Cash from life insurance policies can be borrowed from to afford tuition, down payments on vehicles and homes, and other important life expenses. If the cash borrowed isn’t paid back into the policy, however, the death benefit payout later on may be severely reduced or eliminated.
Finally, parents might want to purchase a life insurance policy for their children to ease the financial pressure of the child’s death. While no parent wants to consider the possibility of their children passing before them, this is a reality too many families face. Insuring children while they are babies can help parents afford funerary and burial expenses should an accident or illness result in the child’s death.
Do You Need Help with Life Insurance for Kids?
At Insurance Specialists, Inc., we can help you establish a life insurance policy for your children regardless of how you wish to use it. We also have a list of things we think parents should know about life insurance for kids on our blog!
Get the help you need to ensure you and your children are protected for the future. Learn more by connecting with an insurance specialist online or by calling (888) 451-0883.